Official China factory PMI edges past forecasts in June

The National Bureau of Statistics factory sector Purchasing Managers' index rose from a reading of 50.9 for June to 51.1 in July, led by an improvement in a gauge for new orders.

Analysts also noted the rise in a sub-index for export orders, a sign that the headwinds from overseas were abating.

A separate PMI for non-manufacturing, which is roughly equivalent to services, dipped from 54.4 to 54.2, while that for construction rose from 59.8 to 60.5.

Meanwhile, a so-called composite PMI edged down from 54.2 to 54.1.

According to Julian Evans-Pritchard at Capital Economics, the construction PMI was consistent with fiscal stimulus from Beijing still finding its way into infrastructure projects, with all of the PMIs combined pointing to an extension of the rapid economic rebound into the second half of 2020.

His interpretation of the survey results however was that export orders would continue to stagnate over coming months.